The DFS has confirmed the Stage 2 SXEW operation as a low-cost, high-margin project which can be commissioned after 16 months of development for a low capital cost.

Gecamines, Tiger's joint venture partner, is currently completing its review of the DFS and any material changes arising out of that review will be notified to the market.

Tiger Resources Managing Director Brad Marwood said: "The results from the DFS underline the robust economics of Kipoi and this should add significant value to our shareholders and the DRC."

"The results are very encouraging and demonstrate that Kipoi should generate significant cash flow based on the forecasted low cash operating costs."

The DFS is based on a copper price of US$3.40/lb in 2014-2017 and US$3.00/lb from 2018 onwards, generating an after-tax IRR of 44% and an NPV (at a discount rate of 8%) of US$378 million. Copper prices of $3.50 and $4.00 would increase the NPVs to $483 million and $659 million respectively, and the IRRs to 49% and 62% respectively.

The existing infrastructure at Kipoi for the Stage 1 Heavy Media Separation ("HMS") facility will act as a springboard for development of Stage 2, thereby minimising costs for the Stage 2 development. The HMS plant is currently producing above 36,000 tonnes per annum of copper in a 25% concentrate. After a short overlap period when the HMS and SXEW facilities will operate simultaneously, the HMS will be superseded in Q2-2014 by the SXEW plant, which will produce LME Grade A copper cathode directly at the mine site.

Significantly, the Stage 2 operation will initially process residues from theHMS plant with approximately 4.9Mt at 2.8% Cu which will provide feedstock to the SXEW plant for the first two and half years. On this basis, mining would not be required to recommence at Kipoi until 2016.

"The Company's immediate aim was to further improve the Kipoi economics by expanding the resource, complete the feasibility study, and move Stage 2 into development," Mr Marwood said.

"The combined Kipoi Stage 1 and Stage 2 projects are fully funded on the basis of current average copper price projections."

"However, management considered it prudent to secure copper price hedging during the development of Stage 2 to ensure stability of revenue."

"In conjunction with this hedging, Tiger has mandated Nedbank Capital, adivision of Nedbank Limited and Rand Merchant Bank, a division of First Rand Bank Limited as joint mandated lead arrangers and book runners to provide a US$80 million project debt facility to partially fund the development of Stage 2. The facility is the subject of a separate news release issued by Tiger today." A detailed summary of the DFS results is contained in Appendix A to this news release.